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The efficiency of healthcare systems in the Arab countries: a two-stage data envelopment analysis approach

Author

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  • Israa A. El Husseiny

Abstract

Purpose - This study aims at evaluating the technical efficiency (TE) of healthcare systems in the Arab region and exploring the key factors that affect the efficiency performance. Design/methodology/approach - The study applies a two-stage Data Envelopment Analysis (DEA) approach to a sample of 20 Arab countries. In the first stage, a DEA model is used to calculate the TE scores of the examined healthcare systems in 2019 and 2010, following both the output and input orientations of efficiency. In the second stage, a censored Tobit model is estimated to investigate the determinants of healthcare efficiency. Findings - DEA results of 2019 indicate that achievable efficiency gains of the Arab countries range from 0.4% to 16% under the output and input orientations, respectively. Six countries are efficient under both orientations. Although the average efficiency scores of the Arab countries have deteriorated between 2010 and 2019, Djibouti and Sudan had the greatest efficiency improvements between the two years. Bahrain, Mauritania, Morocco and Qatar proved to be efficient in 2010 and 2019 under the two orientations of efficiency and according to the two DEA specifications followed. The Tobit model reveals that corruption and government health expenditure tend to have an adverse impact on healthcare efficiency. Originality/value - The author evaluates healthcare efficiency and healthcare's efficiency determinants in the Arab countries. Regardless Arab countries' diversity, these countries are facing common health challenges, including diminishing role of governments in healthcare financing; increased out-of-pocket healthcare spending; poor healthcare outputs and prevalence of health inequities resulting from weak governance institutions. Comparing the efficiency of healthcare systems between 2010 and 2019 gives insights on the potential impact of the Arab spring uprisings on healthcare efficiency. Moreover, examining the determinants of healthcare efficiency allows for better understanding of how to improve the efficiency of healthcare systems in the region.

Suggested Citation

  • Israa A. El Husseiny, 2022. "The efficiency of healthcare systems in the Arab countries: a two-stage data envelopment analysis approach," Journal of Humanities and Applied Social Sciences, Emerald Group Publishing Limited, vol. 5(4), pages 339-358, August.
    • Handle: RePEc:eme:jhassp:jhass-10-2021-0168
    DOI: 10.1108/JHASS-10-2021-0168
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    Citations

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    Cited by:

    1. E. Musoke & B.L. Yawe & J.D. Ssentamu, 2023. "Determinants of technical efficiency of health systems in African least developed countries: A two-stage data envelopment analysis (DEA) approach," Journal of Economic Policy and Management Issues, JEPMI, vol. 2(1), pages 59-75.

    More about this item

    Keywords

    Technical efficiency; Healthcare systems; Arab countries; Data envelopment analysis; Health resources; Health outputs; Tobit; I10; I19; C14; C34; C50;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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